Sears, Kmart get possible reprieve from liquidation as company announces more store closings

Sears, Kmart get possible reprieve from liquidation as company announces more store closings

80 more Sears and Kmart stores are set to close within months

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Updated: 11:58 AM EST Dec 29, 2018

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WEBVTT >> TODAY IS THE LAST CHANCE OF SURVIVAL FOR SEARS AND KMART STORES. 68,000 JOBS ARE ON THE LINE AS IS A $4.6 BILLION PROPOSAL BY SEARS HOLDINGS CHAIRMAN EDDIE LAMPER LAMPERT HAS UNTIL 4:00 P.M. THIS AFTERNOON TO SUBMIT A BID. IF ALL FAILS SEARS COULD CLOSE IT’S STORES AND LIQUIDATE IT’S ASSETS IN A MATTER OF WEEKS. THE 125-YEAR-OLD COMPANY FILED FOR BANKRUPTCY BACK IN OCTOBER. SEARS DESPERATELY NEEDED A GOOD HOLIDAY SHOPPING SEASON, EARLY REPORTS INDICATE THAT IT DID T

Sears and Kmart stores appear to have won a reprieve from liquidation from the company's chairman late Friday.Eddie Lampert, chairman of Sears Holdings, submitted a bid Friday afternoon as part of an effort to keep the venerable retail company ticking, CNBC reported.The news comes as the company announced Friday that it would close another 80 Sears and Kmart stores in early 2019.See the full list of store closings here.Lampert's formal bid was due by 4 p.m. Dec. 28. He submitted the bid under his hedge fund, ESL Investments.The proposal doesn't mean Sears and Kmart are in the clear yet.Sears advisers have until Jan. 4 to determine whether Lampert's hedge fund is a "qualified bidder," CNBC reported.If it's deemed to be qualified, the hedge fund could take part in a Jan. 14 auction against liquidation bids.Sears Holdings — the parent company of Sears and Kmart stores — filed for bankruptcy in October.Friday's news of another 80 stores is in addition to the roughly 180 other Kmart and Sears stores the company already planned to close in announcements made in October and November.With more than 68,000 workers between the two brands, Sears Holdings' last chance at survival comes down to a possible $4.6 billion proposal by Chairman Eddie Lampert.Store closures across the country have left shoppers in some regions having to make long drives to find either a Sears or Kmart location.Adding insult to injury, shoppers last month reported less than enticing deals on Black Friday."This place looks like a ghost town," shopper Brandon Warkenthin told CNBC at the time. "It was a waste to even come out."Sears was retail kingThe company traces its beginnings to 1886 in North Redwood, Minnesota, where railroad station attendant Richard Sears began selling watches as a side business.A year later, he moved his business to Chicago where he hired watchmaker Alvah Roebuck. In 1888, Sears and Roebuck began a catalog business, where they sold watches and jewelry.In 1893, the men incorporated under the name Sears Roebuck.Mail-order operations were the Amazon of the day for rural parts of the country. Orders could quickly be sent to rural locations via rail.Beginning in the late 1890s, consumers could purchase anything from clothing to furniture. For several decades in the early 20th century, Sears sold home building kits via its catalog.Seeing success from its mail-order division, the company printed its first Sears Wish Book in 1933. The seasonal catalog offered Christmas shoppers a look at toys and other gifts available for the holiday season.The Wish Book concept began to diminish in the early 1990s as the catalog became smaller. The company's original concept was discontinued in 2005.Its first retail store opened in 1925 in Chicago.Over time, the company added what would become household name-brand product lines such as Kenmore and Craftsman.In late 1989, Walmart surpassed Sears with the largest domestic revenue of any retailer.In 2005, Sears was purchased by Kmart, which formed Sears Holdings.In October 2018, the company filed for Chapter 11 bankruptcy.Kmart's roots as a five-and-dimeKmart traces its roots to 1897 when S.S. Kresge opened his first five-and-dime store in Memphis, Tennessee. A second store opened the following year in Detroit. The stores expanded across the country with 616 by 1954. The company hit 682 stores in 1940 but retreated due to the Great Depression. Following the war, the company began expanding again.The first store named Kmart opened March 1, 1962, in Garden City, Michigan.Kmart is known for its "Bluelight Specials," its 24-hour Super Kmart Centers and its rebranding of a number of stores to Big Kmart.Among the brands Kmart is widely known for is its former Martha Stewart Everyday line and its current lines with Jaclyn Smith.

Sears and Kmart stores appear to have won a reprieve from liquidation from the company's chairman late Friday.

Mail-order operations were the Amazon of the day for rural parts of the country. Orders could quickly be sent to rural locations via rail.

Beginning in the late 1890s, consumers could purchase anything from clothing to furniture. For several decades in the early 20th century, Sears sold home building kits via its catalog.

Seeing success from its mail-order division, the company printed its first Sears Wish Book in 1933. The seasonal catalog offered Christmas shoppers a look at toys and other gifts available for the holiday season.

The Wish Book concept began to diminish in the early 1990s as the catalog became smaller. The company's original concept was discontinued in 2005.

Its first retail store opened in 1925 in Chicago.

Over time, the company added what would become household name-brand product lines such as Kenmore and Craftsman.

In late 1989, Walmart surpassed Sears with the largest domestic revenue of any retailer.

In 2005, Sears was purchased by Kmart, which formed Sears Holdings.

In October 2018, the company filed for Chapter 11 bankruptcy.

Kmart's roots as a five-and-dime

Kmart traces its roots to 1897 when S.S. Kresge opened his first five-and-dime store in Memphis, Tennessee. A second store opened the following year in Detroit. The stores expanded across the country with 616 by 1954. The company hit 682 stores in 1940 but retreated due to the Great Depression. Following the war, the company began expanding again.

The first store named Kmart opened March 1, 1962, in Garden City, Michigan.

Kmart is known for its "Bluelight Specials," its 24-hour Super Kmart Centers and its rebranding of a number of stores to Big Kmart.

Among the brands Kmart is widely known for is its former Martha Stewart Everyday line and its current lines with Jaclyn Smith.